The Editorial Team |

Kenya Airways Could Resume Fuel Hedging in the Third Quarter

NAIROBI (Capital Markets in Africa) – Kenya Airways Plc announced a return to a fuel-hedging strategy that it partly blamed for driving the company to record losses in recent years. Fuel costs make up about a quarter of the airline’s costs, Chief Executive Officer Sebastian Mikosz told reporters in the Kenyan capital, Nairobi. KQ, as the company is known, abandoned fixed-price fuel contracts in 2016 when they locked it out of rock-bottom oil prices and caused it…

South Sudan Peace Talks Fail to Reach Consensus, Rebels Say

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SOUTH SUDAN (Capital Markets in Africa) – The first face-to-face meeting in two years between South Sudan’s president and his exiled rival failed to achieve a deal, the country’s main rebel group said, asking for more time to reach a lasting agreement to end four years of civil war. President Salva Kiir and the leader of the Sudan People’s Liberation Movement in Opposition, Riek Machar, met in the Ethiopian capital, Addis Ababa, this week under a regional peace…

Cobalt Explorers See Congo Mine Law Offset by Price, High Grades

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KINSHASA (Capital Markets in Africa) – Junior miners exploring for cobalt in the Democratic Republic of Congo reckon increased prices and the country’s high-grade deposits will offset the added costs of new legislation larger companies have opposed. Congo, the world’s largest source of the metal, this month began implementing an amended mining code that introduces new taxes and increases royalty payments. Miners including Glencore Plc, Randgold Resources Ltd. and China Molybdenum Co. have criticized the new law…

Buhari’s Feuding Party Threatens Re-Election Bid in Nigeria

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LAGOS (Capital Markets in Africa) – Widening splits in Nigerian President Muhammadu Buhari’s ruling All Progressives Congress are jeopardising his bid for re-election next year. As the APC holds its national convention to elect party executives on Saturday, it’s threatened by defections as well as infighting between the presidency and its top lawmakers: Senate President Bukola Saraki and House of Representatives Speaker Yakubu Dogara. They joined a coalition that helped Buhari, 75, become the first opposition leader in…

Algeria’s banking sector is adequately capitalised and profitable

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ALGIERS (Capital Markets in Africa) – The International Monetary Fund indicated that Algeria’s banking sector is adequately capitalised and profitable. It noted that the capital adequacy ratio of banks operating in Algeria increased from 18.9% at the end of 2016 to 19.6% at end-2017, while their Tier-One capital ratio declined from 16.3% at end-2016 to 15.2% at end-2017 as a result of higher credit growth. It also pointed out that the banks’ return on assets was at 2% and their return…

Angolan Banking sector resilient to macroeconomic shocks

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LUANDA (Capital Markets in Africa) – The International Monetary Fund considered that the heavy reliance of Angolan banks on the oil sector constitutes a key risk, mainly for state-owned banks, while private banks are better positioned to weather the impact of an oil shock given their initial strong position. It indicated that the main channel of transmission of an oil shock is through fiscal activity, as lower oil prices would contain public spending and weaken non-hydrocarbon sector activity and,…

Emerging Markets Have Many Tools, Few Good: A. Gary Shilling

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LAGOS (Capital Markets in Africa) – The rising U.S. dollar and higher interest rates are pummelling emerging markets. Foreign investors who rode the big rally in these markets in 2016 and 2017 see little reason to stick around and are leaving en masse. This shift will probably persist since dollar-denominated obligations make up some 75 percent of the trillions of dollars in developing-economy debt. True, cheaper currencies versus the greenback aid developing economies by…

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